CONSTRUCTION magnate Steve Bosch, a close associate of Julius Malema, is embroiled in a controversial land-swap deal with the Bela-Bela municipality in Limpopo.

Bosch is about to score prime land at the entrance of the tourist town, estimated to be worth about R50-million, in a deal that would see the municipality taking over Bosch's land, a site adjacent to a mushrooming informal settlement in the Spa Park township outside town.

The Bela-Bela municipal council decided on the deal in November last year, but is now meeting heavy resistance from the town's business community.

Despite council approval on Tuesday, objections have been submitted from a wide range of organisations and individuals, including the local ANC branch, sports clubs and schools .

Bela-Bela municipal spokesman Matome Sebelebele said the decision to exchange the land was informed by the municipality's objective of establishing new residential areas.

"The municipality is currently in the process of evaluating and considering the written objections,'' Sebelebele said.

But the town's business people believe the municipality stands to lose about R40-million, as the 12ha piece of land owned by Bosch's SBNP Family Trust is estimated to be worth much less than the land it is gaining.

Following Thursday's heated council meeting, repeated attempts to contact Bosch were unsuccessful.

The land which Bosch stands to take over includes the town's showground, where an annual agricultural show and property auctions are held.

Nicolaas Johannes van Heerden, the chairman of the Bela-Bela Business Chamber, said: "The showground is the best situated and most prime land in Bela-Bela, as it is at the main entrance to the town. If the transaction goes ahead, the municipality will lose tens of millions of rands."

Bosch is a well-connected businessman in Limpopo and a recipient of a number of tenders from various provincial government departments.

He enjoys a cosy relationship with Malema. Last year, the Sunday Times revealed that Bosch picked up a R1.2-million bill for the architects of Malema's Johannesburg home.